Kosovo government seeks to close privatisation process soon

Kosovo's government is interested in bringing the privatisation process of social enterprises to a faster time, starting in 2003. Government officials say this process has taken too long.

Of the nearly 600 social companies that figure to be owned by the Republic of Kosovo, according to data presented long ago by the Kosovo Privatisation Agency, most of them have been privatised, out of which were created by one or two new private companies.

According to the Kosovo Privatisation Agency, about 2,000 social enterprise assets have remained.

Among the unprivate assets, the largest number make up the land.

Kosovo Government Economic Adviser Haki Shatri tells Radio Free Europe that the Government is interested in intensifying the privatisation process and closing as soon as possible without hurting labour regulations.

“We are committed to closing the process as it is extending even outside the need, but we have nothing concrete so far, as we have been very busy in major processes such as visa liberalisation, transformation of the Kosovo Security Force, membership in Interpol and other processes that have prevented us from dealing with this matter”, he points out.

However, after we complete all these processes by the end of the year, then all the potential will be shifted to issues related to economic development, where the privatisation process and completion of it” entered, says Shatri.

Regardless, the period when the privatisation process can be completed -- this process in Kosovo, by various experts on economic issues -- is considered unsuccessful, failing to meet its economic goals and expectations.

Economic Affairs expert Ismail Kastrati tells Radio Free Europe that the privatisation process has not produced expected effects, development of small- and medium-sized enterprises, nor results in employment.

The privatisation process in general is a poor score process not to say failed. The extension of the privatisation process should have an end, but the problem lies in that the issues are not clear, in particular the means of the privatisation fund, where it has not been resolved what will be done with those means, and the bureaucracy seems to confirm the processes to last as long as possible in order for this provision for specific groups”, Kastrati says.

For a poor process of privatising social companies in Kosovo, Haki Shatri, an adviser to economics in the Government of Kosovo, says.

“We have estimates on how the privatisation process of social companies is not quite satisfactory, not the expected results as early as the beginning. As a process, there has been support from all, it seems that in recent years it has been opened up and that we are not satisfied with”, Sari points out.

The sale of social enterprise assets is said to total around 700m euros, of which 110m euros have been earmarked in the name of 20 per cent, earmarked for workers after the company's sale, in which they have worked, while some 20m euros have been paid to potential creditors.

From surplus funding to Kosovo budget, The AKP has spilled over 100m euros.

Meanwhile, the reserve fund is more than 460m euros, which according to AKP representatives, is held at the Central Bank of the Republic of Kosovo.